Property Insurance

Property insurance is a type of insurance coverage that provides financial protection against damage to or loss of physical property. It covers the costs of repairing or replacing property that has been damaged, destroyed, or stolen due to covered perils. 


Overview of Property Insurance


Property insurance typically covers various types of property, including buildings, structures, equipment, inventory, machinery, furniture, fixtures, and personal belongings. It protects against risks such as fire, theft, vandalism, natural disasters (e.g., hurricanes, earthquakes, floods), and other specified perils.

Types of Policies

Building insurance, also known as property insurance or commercial property insurance, is a type of insurance policy that provides coverage for physical structures / real estate owned or leased by a business. It protects against financial losses resulting from damage, destruction, or loss of buildings and other structures due to various perils, such as fire, theft, vandalism, windstorm, hail, and other covered events.

BPP or Contents insurance provides coverage for the contents and improvements made to leased or rented commercial space. It protects tenants' personal property, inventory, fixtures, and equipment against perils such as fire, theft, vandalism, and other covered risks.

Business interruption insurance, also known as business income insurance, provides coverage for lost income and extra expenses incurred when a business is unable to operate due to a covered loss, such as a fire, natural disaster, or other insured peril. It helps businesses recover lost revenue and continue operations during the recovery period.

Builder's risk insurance, also called course of construction insurance, provides coverage for buildings and structures under construction or renovation. It protects against damage or loss to the project during construction, including materials, equipment, and temporary structures.

Inland marine insurance covers property in transit or temporarily stored at locations away from the insured's premises. It provides coverage for goods in transit, equipment being used off-site, and property stored at various locations, such as warehouses, job sites, or temporary storage facilities.

Boiler and machinery insurance, also known as equipment breakdown insurance, provides coverage for damage or loss caused by the sudden and accidental breakdown of equipment, machinery, or systems used in business operations. It covers repair or replacement costs, as well as business interruption losses resulting from equipment breakdowns.

Cargo insurance is a type of insurance policy that provides coverage for loss or damage to goods and merchandise while they are in transit from one location to another. It protects businesses that ship or transport goods against financial losses resulting from various perils, including theft, damage, fire, accidents, and other covered events.

Flood insurance provides coverage for damage or loss caused by flooding, typically excluded from standard property insurance policies. It helps businesses recover from flood-related damage to buildings, contents, equipment, and inventory caused by overflowing rivers, storm surges, heavy rainfall, or other flood events.

Earthquake insurance provides coverage for damage or loss caused by earthquakes, including structural damage to buildings, contents, and other property. It helps businesses recover from earthquake-related damage and rebuild or repair damaged structures and equipment.

Crime insurance provides coverage for losses resulting from criminal acts such as theft, burglary, robbery, employee dishonesty, forgery, and fraud. It helps businesses recover financial losses resulting from criminal activities committed by employees, outsiders, or other parties.

Specialty property insurance policies are tailored to specific industries or types of property with unique risks and coverage needs. Examples include crop insurance for agricultural businesses, livestock insurance, aviation insurance, marine cargo insurance, and art insurance for galleries, museums, and collectors.

Covered Perils

Property insurance policies specify the perils or events that are covered. Common covered perils include fire, lightning, windstorms, hail, explosions, theft, vandalism, smoke damage, water damage (excluding floods), and civil disturbances. Policies may also offer optional coverage for additional perils or risks.

Limits and Deductibles

Property insurance policies have coverage limits, which represent the maximum amount the insurer will pay for covered losses. Deductibles are the amounts that the insured must pay out of pocket before the insurance coverage kicks in. Higher deductibles typically result in lower insurance premiums.


Property insurance policies also specify certain perils or circumstances that are excluded from coverage. Common exclusions may include floods, earthquakes, acts of war, terrorism, nuclear incidents, wear and tear, and intentional acts.


The cost of property insurance premiums depends on factors such as the value of the insured property, the location of the property, the risk of covered perils, the chosen coverage limits, and the deductible amount. Insurers may also consider the property's construction, occupancy, security measures, and claims history when determining premiums.


Property insurance is essential for homeowners, renters, landlords, and businesses to protect their valuable assets and financial interests against the risks of property damage, destruction, or loss. Without adequate property insurance coverage, individuals and businesses may face significant financial losses and hardship in the event of a covered peril.


In summary, property insurance is essential for individuals and businesses to protect their valuable assets, mitigate financial risks, ensure compliance with legal requirements, maintain business continuity, and enjoy peace of mind knowing that they are financially protected against unexpected property damage or loss.

Importance of having Property Insurance

Property insurance is crucial for individuals and businesses for several reasons:

Financial Protection

Property insurance provides financial protection against the costs of repairing or replacing damaged, destroyed, or stolen property. Whether it’s a home, business property, or personal belongings, property insurance helps cover the expenses associated with unexpected events such as fires, floods, thefts, or natural disasters.

Asset Protection

Property is often one of the most significant investments individuals and businesses make. Property insurance safeguards these assets, ensuring that owners can recover financially from unforeseen losses without depleting their savings or facing financial hardship.

Risk Mitigation

Property insurance helps mitigate risks associated with property ownership or operation. By transferring the financial burden of property damage or loss to an insurance company, property owners can focus on their daily activities without worrying about the potential financial consequences of unforeseen events.

Compliance Requirements

Property insurance may be required by mortgage lenders, landlords, or regulatory authorities. For example, mortgage lenders typically require homeowners to maintain property insurance to protect their investment in the property. Landlords may require tenants to carry renters insurance as a condition of the lease agreement.

Business Continuity

For businesses, property insurance is essential for ensuring continuity of operations. It helps businesses recover quickly from property damage or loss, minimizing downtime and financial losses. Business interruption coverage, often included in property insurance policies, provides additional financial support for lost income and extra expenses during the recovery period.

Liability Protection

Property insurance policies may include liability coverage, which protects property owners from financial responsibility for injuries or damages that occur on their property. This coverage extends to legal defense costs, settlements, or judgments arising from third-party liability claims.

Peace of Mind

Knowing that they have property insurance in place provides property owners with peace of mind and confidence in their ability to handle unexpected events. Whether it’s a homeowner worried about a fire or a business owner concerned about vandalism, property insurance offers reassurance that financial protection is available when needed most.

Risk Transfer

Property insurance allows property owners to transfer the financial risk of property damage or loss to an insurance company. By paying a relatively small premium, property owners gain access to significant financial protection against potentially catastrophic events, thereby reducing their overall financial risk exposure.

Overall, property insurance provides peace of mind and financial security by mitigating the risks associated with property ownership and protecting against the unforeseen events that can result in property damage or loss.

Claim Scenarios for Property

These scenarios demonstrate the diverse range of incidents covered by property insurance and highlight the importance of having this coverage to protect against the financial consequences of property damage, destruction, or loss.
Here are several claim scenarios that illustrate the types of incidents covered by property insurance:

Fire Damage

A fire breaks out in a commercial building, damaging the structure, equipment, and inventory. Property insurance covers the cost of repairing or rebuilding the damaged property, as well as replacing any destroyed inventory or equipment.

Water Damage

A pipe bursts in a residential property, causing water damage to the walls, floors, and furnishings. Property insurance covers the cost of repairing the water damage and replacing any damaged property.


Thieves break into a retail store and steal merchandise, cash registers, and other valuables. Property insurance covers the cost of replacing the stolen items and repairing any damage to the property caused by the break-in.


Vandals spray graffiti on the walls of a commercial building and break windows, causing property damage. Property insurance covers the cost of cleaning up the graffiti, repairing the damage, and replacing any destroyed property.

Storm Damage

A severe storm with strong winds damages the roof of a residential property, causing leaks and water damage to the interior. Property insurance covers the cost of repairing the roof and interior damage caused by the storm.

Flood Damage

A river overflows its banks and floods a residential neighborhood, damaging homes and property. While standard property insurance typically does not cover flood damage, separate flood insurance policies are available to provide coverage for this peril.

Natural Disaster

An earthquake strikes a commercial building, causing structural damage and collapsing walls. Property insurance covers the cost of repairing or rebuilding the damaged property and replacing any destroyed assets.

Accidental Damage

A delivery driver accidentally drives a truck into the side of a retail store, causing significant damage to the building and storefront. Property insurance covers the cost of repairing the damage and restoring the property to its pre-loss condition.

Loss of Use

Following a covered loss, such as a fire or storm damage, a homeowner is unable to live in their home while repairs are being made. Property insurance may provide coverage for additional living expenses, such as temporary housing and meals, until the home is repaired or rebuilt.

Types of Businesses that need Property Insurance

Property insurance is essential for various types of businesses across industries.
Here are some examples of businesses that typically need property insurance:

Retail Stores

Retail businesses, including clothing stores, grocery stores, electronics shops, and department stores, own or lease commercial space where they store inventory, equipment, and fixtures. Property insurance protects these assets from risks such as fire, theft, vandalism, or natural disasters.

Restaurants and Cafes

Food service establishments, including restaurants, cafes, bistros, and fast-food chains, own or lease commercial kitchens, dining areas, and storage facilities. Property insurance covers the building structure, equipment, furnishings, and inventory against damage or loss due to fires, floods, equipment breakdowns, or other perils.

Manufacturers and Distributors

Manufacturing companies, wholesalers, and distributors operate facilities where they produce, store, and distribute goods. Property insurance protects manufacturing plants, warehouses, distribution centers, and inventory from risks such as fires, explosions, equipment malfunctions, or theft.

Office Buildings

Office buildings house businesses, professional offices, and administrative facilities. Property insurance covers the building structure, office equipment, furniture, fixtures, and other assets against damage or loss caused by fires, floods, storms, vandalism, or other perils.

Hotels and Hospitality Businesses

Hotels, motels, resorts, and other hospitality businesses own or operate properties with guest rooms, amenities, and common areas. Property insurance protects hotel properties, furnishings, equipment, and inventory from risks such as fires, floods, storms, thefts, or accidents.

Commercial Real Estate Owners

Property owners, landlords, and real estate investors own or manage commercial properties, including office buildings, retail centers, industrial parks, and multi-unit residential complexes. Property insurance covers the buildings, structures, and common areas against damage or loss caused by various perils.

Construction and Contracting Firms

Construction companies, contractors, builders, and tradespeople operate construction sites where they build, renovate, or repair structures. Property insurance, including builders risk insurance, protects construction sites, materials, equipment, and tools from risks such as fires, thefts, accidents, or natural disasters.

Technology and IT Companies

Technology firms, software developers, IT consultants, and data centers own or lease office space, data centers, and equipment where they conduct their operations. Property insurance covers the building structure, technology infrastructure, equipment, and data against damage or loss from fires, floods, cyberattacks, or other perils.

Healthcare Facilities

Hospitals, clinics, medical offices, dental practices, and healthcare facilities own or operate properties where they provide medical services to patients. Property insurance protects healthcare facilities, medical equipment, supplies, and furnishings from risks such as fires, floods, equipment malfunctions, or accidents.

Educational Institutions

Schools, colleges, universities, and educational organizations own or lease campuses, classrooms, administrative buildings, and facilities. Property insurance covers educational institutions, equipment, libraries, laboratories, and other assets against damage or loss caused by fires, floods, storms, accidents, or other perils.

These are just a few examples of businesses that need property insurance to protect their valuable assets, facilities, and operations from the risks of property damage, destruction, or loss. Regardless of the industry or sector, any business that owns or leases property, equipment, or inventory should consider obtaining property insurance to mitigate risks and safeguard their financial interests.

The Millward Agency, Inc. Testimonials

Hear from our clients in the automotive industry who have steered their businesses toward stability and growth with Millward Agency’s insurance solutions. Our case studies demonstrate our commitment to providing unparalleled support and protection, proving that no challenge is too big when you have the right insurance partner.

Kurtis ThorntonKurtis Thornton
18:38 16 Jan 22
Very helpful and nice people, a great place to get your insurance needs taken care of.
Christopher LymanChristopher Lyman
14:48 26 Oct 19
Finally, I don't need to ever look for another insurance agent. The Millward Agency handles my personal and business insurance. Always helpful with my questions and quick to respond to my emergencies. The Millward Agency Rocks!
Markusz SudozMarkusz Sudoz
19:03 19 Jul 19
Every time I go to my broker, Ed Caceres @ the Millward Agency, he always finds me the best insurance rates on my real estate properties. Ed is great, always extremely responsive and understanding of the industry. In the past I would go do my own insurance shopping and spend hours on hours to get the best rate, now I do not even bother shopping around I just call Ed and he always has the best pricing. In the beginning I got a quote from Ed then shopped around, now I have learned to not even waste my time. Ed @ Millward Always saves me hundreds of dollars. 110% on customer service, 100% on pricing!!! A+++
Mobility SolutionsMobility Solutions
19:09 25 Jul 18
Everybody!!!!! is Great to work with when ever I need anything which is almost monthly.Linda
carlene klebecarlene klebe
20:01 22 Jun 18
My former insurance agent and friend recommended Ed Caceres of Millward Agency. Within hours of having given Ed a call, I had quotes and was decided to go with his carrier. He was professional and answered all my questions. I’m happy to have done business with Ed and Millward Agency.
John CourtneyJohn Courtney
16:20 11 Jun 18
Business or Personal this is who you want - Personal service from their Team is amazing, treat as though you are their only client.* Business - Review policy/coverage every year. Not limited to one or two insurance providers. Recommend changes, not necessarily to save money (although it is available) provide additional coverage. Three months later our additional coverage cost $150 on a $15000 claim. For years we were not covered! They are not limited to one or two insurance providers as our previous agent.* Personal - couple of claims were handled like we were their only client. They bundled coverage in such a way to save $2100 a year for a family of four and kids in college.***Will continue to recommend to business colleagues, friends and family***
Karen CarterKaren Carter
16:01 08 Jun 18
Our company has been working with Millward Agency for many years.They have been the best insurance company I have ever worked with.The staff is always very informative and very professional. Our insurance needs which include general, auto and worker's comp are very complex. Millward is able to handle and update all of our needs at any time of the year. I really like the fact they get back to you very quickly! They are very knowledgeable and caring we never think of going elsewhere. We will definitely be customers for years to come. Thank you Millward Agency!
Chad StottChad Stott
17:56 07 Jun 18
Wade and the Millward team have been consistently reliable, prompt, knowledgeable and a pleasure to work with. Wade and his crew have guided us through our ever growing needs and we attribute our success to the partnerships we have forged with organizations like The Millward Agency. We look forward to many more years working together.

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